4.4 MARKET RESEARCH. Learning Outcomes To understand why and how organisation s carry out market research. A02 To have working knowledge and understanding.

4.4 MARKET RESEARCH

Learning Outcomes• To understand why and how organisation s carry out market

research. A02• To have working knowledge and understanding of the following

primary research methods – surveys, interviews, focus groups, observations. A02

• To have working knowledge and understanding of the following secondary research methods – market analyses, academic journals, government publications, media articles. A02

• To be able to analyse the ethical considerations of market research. A03

• To know the difference between qualitative and quantitative research. A02

• To have working knowledge and understanding of the following methods of sampling – quota, random, stratified, cluster, snowballing, convenience. A02

Central Question

Market Research:

Is it really Necessary?

What is Market Research?

• Market Research is the process of gaining information about the market (customers and competitors) through the collection, analysis and reporting of data related to a particular market

ADHOC CONTINUOUS

When necessary

Regular & ongoing

There are 2 methods of Market Research

Primary Research Secondary Research

The collection of new and original information (primary data) for a specific purpose

Looking into and examining existing published information (secondary data)

Research Methods

Secondary Research

Finding secondary sources of information either in paper based or internet based•Books•Magazines•Newspapers•Market Reports (Mintel, Keynotes)•Academic Journals•Government statistics•Trade Journals•Competitor publications (annual reports)

What are the advantage/limitations of secondary data? Complete task on next slide.

Which ones apply to the

techniques/methods that you need to know:

•Market analyses•Academic journals•Government publications•Media articles

Task - 5 mins• Create & share a Google Doc. Pair up and tackle

Ads and Disads for your secondary market research method

Secondary Method/Technique

Advantages Disadvantages

Academic Journals

Media articles

Government Publications

Market Analyses

So…Which Secondary Method is Best?

• There is no best method but some methods could be more appropriate in a given context.

• How old the data is could aid your decision of which method(s) are most appropriate.

• Ideally a combination of methods is likely to increase accuracy and reliability whilst offering a broader overview.

Primary Research

• Can you think of what primary research methods a firm could use?

• Where might a business obtain secondary data from?

Types of Primary Research

• Questionnaires/Surveys• Interviews • Focus Groups• Observations

How might questionnaires be carried out?How might interviews be carried out?What would be the advantages and limitations with each of these options? Complete task on next slide.

Task - 5 mins• Create & share a Google Doc. Pair up and tackle

Ads and Disads for your primary market research method

Primary Method/Technique

Advantages Disadvantages

Questionnaires / Survey

Interviews

Focus Group

Observations

So…Which Primary Method is Best?

Focus Groups• Small groups of consumers

discuss a product led by a researcher

• Provides in-depth information• Can uncover unanticipated

problems• Danger of group-bias• Often used to make decisions

on packaging/advertising

Interviews

• In depth discussions• Avoid chance of group-bias• However interviewer could bias

conversation to achieve the required results

Ethical considerations of market research

Research and find one example of each of the following. Make and share on googledoc

Ethical Consideration

Definition / Meaning

Example 1(evidence)

Example 2(evidence)

Deceptive Practices

Invasion of Privacy

Breaches of Confidentiality

Objectivity

Qualitative vs Quantitative Research

Qualitative Research• Data collection on

opinions, attitudes, thoughts, beliefs emotions.

• Results can be difficult to analyse and can be subjective (open to interpretation)

• Key phrase used is “why?”.• Researcher is part of the

process• Expensive & time

consuming

Quantitative Research• Collecting numerical data

that can be measured• Results less open to

interpretation – harder to argue with numbers

• Objective (although bias can still occur)

• Questions – How many? How often?

• Researcher is separate• Narrow focus

Which methods of primary research would be used for qualitative research?

So…Which is Best?

QUANTITATIVE QUALITATIVEor

DISCUSS

Look at some questionnaire examples on the next slides to help aid discussions

Questionnaire design

Look at the following example questionnaires

What is good/bad about them?

Questionnaire design• The questions need to be asked in a logical order• The questionnaire must not be too long• Difficult questions should be at the end of the

questionnaire• Personal questions such as those about age or hygiene

should be phrased sensitively• it is important that questions are:

– are easy to understand– cover every possible answer– are unbiased (they do not lead respondents to give

a particular answer) – unambiguous (they have a clear meaning).

Sampling• The only way to gain a “True” and “accurate” picture

of the market is to ask everyone. Is this possible / feasible?

NO!

• Therefore, the idea is to select a group (sampling) that will represent the population as a whole (sample)

Sample Size

• The SAMPLE SIZE is the number of people within the sample

• The sample size will be a trade-off between cost and accuracy

• Bigger sample sizes will give greater ‘confidence levels’

Choosing the Sample

• Once the business has decided on how many people it will survey, they then need to choose who these people will be…..

• This is done using a sampling method

How might it choose the sample?

Sampling Methods

• Quota • Random• Stratified• Cluster• Snowballing• Convenience

What does each of these sampling methods involve?

Quota Sample• Aim is to obtain a sample that is "representative" of

the overall population;• In quota sampling, the researcher aims to represent the

major characteristics of the population by sampling a proportional amount of each.

• quota sample (proportional to the whole population) is chosen by the interviewer

Advantages/limitations?

Example Quota Sample

Category Sample size

Males 60 Full Time 54Part Time 6

Females 40 Full Time 32Part Time 8

E.g. If the whole population is 60%% male and 40% female, with 90% of the population being full time and 10% being part time. A sample of 100 people would be selected as per the following quotas:

Random SampleEverybody within the population has

the same chance of being picked for research.

This is like putting the name of everyone in a “hat” and picking out a percentage of the total to research.


+ Risk of bias minimised- The people selected may not be part

of the target group- Sample sizes need to be large to get

meaningful results

Example…..

• A firm has a workforce of 1000. Of these:• 600 are male• 400 are femaleWhat percentages are these?If the business wants to do a survey of 100

employees how many males and females should they ask?

Survey Sample

Category Sample size

Males 60 Full Time 54

Part Time 6

Females 40 Full Time 32

Part Time 8

Stratified Random SampleThis is a way of choosing people making sure a fair spread of

people are used.

This is usually done by splitting up the population into certain strata based on similar characteristics. Once this has been done a random sample will be done on each group of people.


Cluster Sampling• Units in the population can often be found in certain

geographic groups or "clusters" • A random sample of clusters is taken, then either all or

a sample of people within the cluster are examined


Snowballing

• Surveys/Interviews are carried out with individuals who then suggest other friends/family/colleagues

• Useful if the business is unable to get hold of appropriate respondents


Convenience

• Groups selected based on ease of access and proximity to researcher i.e. choosing the first 10 people you see


Task – 5 -10 mins• Create & share a Google Doc. Pair up and tackle

Ads and Disads for your sampling method

Sampling Method Advantages Disadvantages

Quota

Random

Stratified

Cluster

Snowballing

Convenience

Criteria for choice of sampling method

• Available budget• Required accuracy• Time constraints• Availability of population

Results from data collection

• The data collection process should strive for a high degree of accuracy whilst ensuring integrity and ethics.

• Benefits of data collected properly include:> ability to answer the research questions posed> increased accuracy of findings> opportunities for other researchers to pursue

Types of Errors

• Sampling error• Non response error• Data collection error• Data analysis error

SO…IMPORTANT TO MINIMISE OR AVOID IF POSSIBLE!

Market Research and Concepts - CUEGIS

• How does MR apply to the concepts?

4.4 MARKET RESEARCH. Learning Outcomes To understand why and how organisation s carry out market research. A02 To have working knowledge and understanding.

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